LTCI Cost of Waiting

What Is the Potential Cost of Waiting to Purchase a Long-Term-Care Insurance Policy?

There is a time-honored phrase related to long-term-care insurance and it goes like
this: "Your money pays for long-term-care insurance, but your health buys it."

As one ages, the risk of not being able to qualify for long-term-care insurance
may increase due to deteriorating health.

In addition to the risks of health problems as we age, the dollar cost of long-term-care insurance rises dramatically because the insurer has less time to accumulate sufficient reserves to cover its part of the risk.

A complete statement of coverage, including exclusions, exceptions, and limitations, is found only in the long-term-care insurance policy. It should be noted that carriers have the discretion to raise their rates and remove their products from the marketplace.

Long-term-care premiums are based on your age at the time of application. This calculator assumes that premiums are 8 percent higher each year that you delay purchase. Individual policies may vary.

Your Results

Current age:

0

Annual premium for a long-term-care policy:

$0

Age you anticipate buying long-term-care insurance:

0

Age you anticipate requiring long-term-care benefits:

0

In this case, your premium at the higher age would be:

$0

The total cost difference now through the year when you expect to need benefits as a result of delaying the decision to acquire long-term-care coverage:

$0

Based on the information you provided, this chart illustrates the estimated annual
costs of a long-term-care insurance policy now vs. waiting. Note that in many cases,
your total cost for coverage may be lower if you purchase sooner at a lower premium
than if you wait and pay a higher premium, despite the fact that you would potentially
pay premiums for fewer years.

Cost of Waiting to Purchase Long-Term-Care Insurance

This hypothetical example is only an estimate and assumes that premium levels remain
stable over time. This example does not represent any specific insurance policy
or product. Actual results will vary.

This hypothetical example is used for illustrative purposes only. Actual results will vary.

The information in this calculator is not intended as tax or legal advice, and it
may not be relied on for the purpose of avoiding any federal tax penalties. You
are encouraged to seek tax or legal advice from an independent professional advisor.
The content is derived from sources believed to be accurate. Neither the information
presented nor any opinion expressed constitutes a solicitation for the purchase
or sale of any security.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC COMMITTED TO YOUR FINANCIAL FUTURE State Registrations Disclosure for Websites: This site is published for the residents of the United States only. Raymond James' Financial Advisors may only conduct business with residents of the states for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability.

Links are being provided for informational purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.

Duff and Associates is not a registered broker/dealer, and is independent of Raymond James Financial Services.